Bitcoin Miner does the math, calls it quits

Post by politician » Wed, Jul 06, 2011, 8:23 PM UTC

ww520 wrote: post #83

stayjin wrote: post #74

To be honest, when I read the original idea behind the bitcoin, I was thrilled. I thought This Is It (TM). The monetary system, as it exists today is based on debt as a lever for growth. Banks can get a deposit of 1$ and God/King/Char/President/Whatever gave them the right to lend 5$ with it, and hold the 5th person under obligation of debt, to pay back that one dollar which the bank that gave it to him DIDN'T HAVE i…

It's a nice thought but BitCoin doesn't change the debt-leveraged practice of the banks. Sorry to rain on the parade. The fractional reserve requirement allows the banks to lend multiples of their incoming deposits no matter what the currency. BitCoin is just another currency, like the dollars. M1/M2 in circulation is much smaller than the actual money used in the economy. BitCoin will be the same way. The banks can…

Post by nknight » Wed, Jul 06, 2011, 8:54 PM UTC

lmkg wrote: post #53

omouse wrote: post #46

Earlier quoted context omitted.

However the police also check for unusual heat signatures coming out of buildings at night, that could also have been what happened. Uh, wtf, since when? They're allowed to do this without a warrant? They just randomly drive along the streets and check heat signatures? Looking forward to the future when Bitcoin gets banned, and we see documentaries with police officers breaking down makeshift barricades to gain entry…

> Uh, wtf, since when? They're allowed to do this without a warrant? They just randomly drive along the streets and check heat signatures? "Emissions" are part of a Constitutional gray area because of the murky definition of privacy, but generally cops are allowed to utilize them. Heat signatures are not placed in the same category as wiretaps, but rather in the same category as walking down the street and happening…

Post by caf » Wed, Jul 06, 2011, 10:59 PM UTC

jerf wrote: post #75

URSpider94 wrote: post #70

Earlier quoted context omitted.

The "true value" of a Bitcoin is zero -- it's just some bits on a computer. In the same way, the "true value" of paper currency is very close to zero -- I guess you could use it for note-taking. The market value of Bitcoin will depend on the demand to own Bitcoin, as opposed to any competing commodity or currency.

Common myth, but it's false. Paper currency's true value is that the issuer is obligated to do something in return for it. Since that's usually governments, paper currency's true value is that you can use it to pay debts to that government. Everybody in the world can stop using US Dollars for anything else, but they'll still be useful for that, because that is basically the definition of a US Dollar. Says so right on…

Post by prsimp » Wed, Jul 06, 2011, 11:56 PM UTC

thesis wrote: post #66

Wouldn't more people joining your pool increase your chances of more bitcoins? I know your % in the pool will go down, but your pool has a better chance overall.

Post by URSpider94 » Thu, Jul 07, 2011, 2:19 AM UTC

jerf wrote: post #75

URSpider94 wrote: post #70

Earlier quoted context omitted.

The "true value" of a Bitcoin is zero -- it's just some bits on a computer. In the same way, the "true value" of paper currency is very close to zero -- I guess you could use it for note-taking. The market value of Bitcoin will depend on the demand to own Bitcoin, as opposed to any competing commodity or currency.

Common myth, but it's false. Paper currency's true value is that the issuer is obligated to do something in return for it. Since that's usually governments, paper currency's true value is that you can use it to pay debts to that government. Everybody in the world can stop using US Dollars for anything else, but they'll still be useful for that, because that is basically the definition of a US Dollar. Says so right on…